The dollar index weakened past the 96 level on Monday, as safe-haven demand for the currency eased after the US president agreed to meet with his Russian counterpart to de-escalate tensions over Ukraine. The office of French president Emmanuel Macron said that Biden and Putin have agreed “in principle” to a summit in the coming weeks, after a series of conversations between Macron and both leaders, provided that Russia does not invade Ukraine.
Meanwhile, traders continued to assess the outlook for monetary policy after St. Louis Fed president James Bullard, who had just called for aggressive action, warned last week that inflation could get out of control without rate hikes. Markets will be closely watching a string of public remarks from Federal Reserve officials this week for any hint on the timing and magnitude of rate hikes.